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Market note · 04 September 2026

Brazil's Profert law offers $190m tax relief to boost fertiliser output

Brazil has enacted the Profert programme, a legislative package aimed at reducing the country's heavy reliance on imported fertilisers. The law provides around $190 million in tax credits alongside financing support from state development bank BNDES, targeted at producers investing in domestic manufacturing capacity.

A key feature is a mandatory domestic-content requirement for fertiliser sold within Brazil, effectively obliging blenders and distributors to source a minimum share of locally produced material. This could gradually reshape import flows into the country, one of the world's largest fertiliser consumers, particularly for nitrogen, phosphate and potash products.

For international traders, the measure signals a medium-term push by Brazil to displace imports with local supply, which could affect volumes moving through ports and long-term contract structures with Brazilian buyers. Firms with production or blending assets in Brazil stand to benefit from the incentives, while pure import-dependent suppliers may face tighter market access as domestic-content rules phase in.

What it meansTraders supplying Brazil should watch how the domestic-content floor is implemented, as it could reduce import demand over time and favour companies with local production or blending assets.

Related on gidex.com: urea supply · DAP supply · MOP supply

Original note by GIDEX Group based on reporting by Fertilizer Daily. Written up by the GIDEX market desk — see how these notes are made. Not investment advice.

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